Effective Purchasing, Tendering and Supplier Selection

Course Code: LT06

Course Objective

  • Identify and reduce procurement risk through development of a plan of action
  • Enable improved performance from your existing suppliers through evaluation and performance measurement
  • Understand and strengthen your supply chain
  • Improve operating relationships within your organisation
  • Award contracts on the basis of measured performance/criteria
  • Provide a working understanding of the Negotiation process


Target Audience

  • Purchasing professionals
  • Those involved in defining the specification and evaluating supplier performance
  • Those involved in preparing and analysing bids
  • Those with an involvement in supplier relationships
  • Those whose role involves negotiation with outside agencies


Course Outline

DAY 1: What is the Role of Purchasing in the Company

  • Introduction to Purchasing and its contribution to the organisation
  • What is the purpose of a business
  • Dealing with the problem of being a “go between“
  • Purchasing process and cycle of procurement
  • Positioning purchasing within the company
  • Vision, Mission and Value of Purchasing
  • Purchasing Structure
  • Where to find performance improvement

DAY 2: Developing the Purchasing Strategy

  • How to reach the internal customer
  • Developing Purchase agreements
  • Importance of being involved in creating the specification
  • Supplier selection methodology
  • Criteria for pre-qualifying suppliers
  • Integrating the supplier selection process
  • Positioning your need and you value against the market
  • The role of ISO 9000

DAY 3: Selecting the Right Supplier & Evaluating Performance

  • Conditioning the supplier to meet your requirement
  • The total cost approach to purchasing
  • Analysing Cost
  • Analysing Value
  • Hidden costs
  • Life cycle costing
  • Using Price indices
  • Performance evaluation

DAY 4: Tendering and Analysing The Bid

  • Process needs
  • Types of tender
  • Electronic commerce / E Auctions
  • Evaluating a bid objectively
  • Terms and Conditions of contract
  • Standard contract clauses
  • Methods of Payment
  • Expediting the agreement
  • What if the contract fails to deliver – legal issues

DAY 5: Negotiating the Contract and Preparing a Plan of Improvement Action for Purchasing

  • Defining negotiation
  • Obstacles to effective negotiation
  • Different styles of negotiation
  • The tools of the process
  • Phases of a negotiation
  • What to do and what not to do
  • Focus on four key areas of world class performance
  • Evaluating performance gaps

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Date & Location

Date : 07 January 2018

Duration : 5 days

Place : Amman

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Date : 22 April 2018

Duration : 5 days

Place : Kuala Lumpur

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